The need for more capital combined with its low share price has Echelon Wealth Partners analyst Rob Goff feeling a little less bullish about Snipp Interactive (Snipp Interactive Stock Quote, Chart, News: TSXV:SPN). Yesterday, Snipp reported its Q2, 2016 results. The company EBITDA of negative $1.54-million on revenue of $2.8-million, a topline that was 34 per cent higher than the $2.1-million topline the company posted in the same period last year. "Q2 2016 represented another solid quarter for the company," said CEO Atul Sabharwal. "We continue to grow our revenues quarter over quarter and have taken the steps necessary to reduce our costs as we drive towards profitability. This quarter allowed us to finally consolidate all of our operations and complete the integration of our past acquisitions, putting us on a strong footing to continue to be a disruptive force in the industries we serve. We are off to a great start to Q3 2016 and look forward to delivering continued growth as we execute on our plan for the remainder of 2016." Goff today maintained his "Speculative Buy" rating on Snipp, but lowered his price target from $0.40 to $0.35 due primarily to the potential for a dilutive financing. He believes the company's current pipeline would support a credit line of more than (U.S.) $2-million, and says he would prefer that option instead of an equity raise. "We are maintaining our Speculative Buy rating while modestly reducing our PT by $0.05 to $0.35, reflecting the higher cost of equity," says the analyst. "We believe the Company will successfully build out its loyalty business and recurring revenue promotions while in the process strengthening its longer-term value prospects as either a stand-alone upstart or as an acquisition target. However, we continue to recognize that the share performance and valuation barring potential catalysts may be challenged over the midterm awaiting confirmation of capital raising plans and further evidence of scaling on the Loyalty businesses together with full run-rate cost efficiencies following on two waves of reductions where the expected annualized savings have moved from $2.0M to $2.5M. We were encouraged by the $716K q\/q revenue gain supporting a $962K q\/q EBITDA gain as the efficiency gains begin to emerge. We believe the Company\u2019s A\/R profile will support the successful securing of a line of credit as currently contemplated. We believe the Company will weigh its ongoing new product development costs (~70 engineers) against the cost of equity as it goes forward given its current capitalization." Goff's new target of $0.35 still implied a return of 122.2 per cent at the time of publication.